LED Horticulture Lighting Market - Forecasts from 2025 to 2030

The LED horticulture lighting market is expected to grow from USD 3.037 billion in 2025 to USD 7.003 billion in 2030, at a CAGR of 18.18%.

Horticulture, a specialized segment of agriculture, focuses on the controlled cultivation of plants on a smaller scale. Unlike traditional light sources such as fluorescent lamps, high-pressure sodium, or metal-halide, which are less efficient, have shorter lifespans, and offer limited control over wavelengths critical for photosynthesis and morphogenesis, LED lighting has emerged as the preferred choice for horticulture. LEDs are energy-efficient and enhance plant growth by providing customizable light spectra, making them ideal for modern horticultural practices. The global rise in food insecurity, driven by population growth and limited agricultural land, is accelerating the adoption of horticulture, thereby increasing demand for LED horticulture lighting. Additionally, controlled urban farming, spurred by urbanization and shrinking arable land, is a significant growth driver. Concerns over global warming further bolster the shift toward horticulture, as LED lighting helps mitigate the impacts of climate change by creating stable, controlled environments for plant growth.

Market Drivers

Indoor Farming as a Key Growth Catalyst

The rise of indoor and vertical farming is a primary driver of the LED horticulture lighting market. These methods address the challenges of limited land and growing food demand by enabling cultivation in controlled environments. LED lighting, with its adjustable spectrum and illuminance, is widely used for crops such as tomatoes, herbs, greens, and cucumbers. For instance, Farm8, a South Korean agriculture company, leverages LED technology to reduce plant growth cycles compared to traditional outdoor methods. This efficiency is critical as the global population continues to rise, creating pressure on food production that conventional farming alone cannot meet. LED lights serve as the primary light source in indoor farming, compensating for the absence or limited presence of natural light. Signify, through its GrowWise initiative, utilizes LED horticulture lighting to cultivate crops like strawberries and leafy vegetables in city farm facilities, demonstrating the technology’s potential to enhance crop yields. Such advancements in indoor farming are expected to sustain the growing demand for LED horticulture lighting.

Geographical Outlook

Europe’s Significant Market Share

Europe is projected to hold a substantial share of the LED horticulture lighting market, driven by initiatives to promote plant factories and provide subsidies to stimulate local demand. The European Union’s push to adopt LED technology creates significant opportunities for providers in the horticulture sector. Rising awareness of LED benefits, coupled with increasing food demand due to population growth, is driving the expansion of vertical farms across the region. For example, the Netherlands has been a hub for vertical farming innovation, with projects like Staay Food Group’s vertical farm utilizing Philips GreenPower LED lighting to optimize crop production. Additionally, European companies are advancing horticultural lighting technology. Tungsram, a Hungarian lighting technology group, has collaborated with the University of Reading in the UK to enhance strawberry cultivation using LED lighting, capitalizing on the fruit’s high demand in the region. The competitive landscape in Europe is robust, with companies strengthening their market presence through partnerships and strategic acquisitions. These developments underscore Europe’s leadership in adopting and innovating LED horticulture lighting solutions.

Competitive Dynamics

The European LED horticulture lighting market is highly competitive, with numerous companies capitalizing on the growing demand for advanced agricultural solutions. Strategic collaborations and acquisitions are common as firms aim to expand their market footprint. For instance, partnerships between lighting providers and research institutions, such as Tungsram’s collaboration with the University of Reading, highlight the focus on innovation and application-specific solutions. Companies are also investing in product development to enhance efficiency and cost-effectiveness, further driving market growth. The combination of technological advancements, supportive policies, and a strong focus on sustainable agriculture positions Europe as a key player in the global LED horticulture lighting market.

The LED horticulture lighting market is experiencing significant growth, fueled by the rise of indoor and vertical farming, increasing food demand, and the need for sustainable agricultural practices in the face of global challenges like climate change and population growth. Europe stands out as a major market, supported by innovative projects, strategic partnerships, and favorable policies. As LED technology continues to evolve, its role in enhancing crop yields and enabling controlled farming environments will drive further market expansion, particularly in regions prioritizing agricultural innovation.

Key Benefits of this Report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
• Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
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Report Coverage:

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others).

Segmentation:

By Crop Type

• Leafy Greens
• Flowers and Ornamental
• Specialty Crops
• Others

By Application

• Greenhouses
• Indoor/Vertical Farming
• Consumer
• Research Applications

By Lighting Type:

• Top Lighting
• Interlighting
• Supplemental Lighting

By Technology:

• LED
• High-Pressure Sodium (HPS)
• Fluorescent
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa (MEA)
• Saudi Arabia
• UAE
• Isreal
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Indonesia
• Thailand
• Taiwan
• Others